However, Vietinbank (CTG) and Eximbank (EIB) fell 0.5 per cent and 1.7 per cent, respectively and Sacombank (STB) and BIDV (BID) closed flat.

According to analysts at Vietnam Investment Securities Co (IVS), the market seemed to wait for the leadership of the banking group. When this group weakened, the market declined but when big banks like Vietcombank and Military Bank advanced, the market rebounded.

This momentum helped the VN-Index surpass the 810 point benchmark.

“However, the over-reliance on bank stocks which have already risen sharply to over the valuation area will restrain the VN-Index to advance further,” IVS analysts wrote in a daily report.

In the VN30 basket (which tracks the top 30 largest shares by market value and liquidity), 14 gained and 10 lost. Besides banks, big gainers included VinGroup (VIC), Mobile World Group (MWG), steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG) and IT firm FPT Corp (FPT).

“The market may again have to rely on bank stocks for another advance. The VN-Index will likely move around 810 points but the stocks rising on Tuesday may be under profit-taking pressure,” IVS analysts forecast.

Liquidity decreased sharply with 183.2 million shares worth total VND3.7 trillion (US$162.7 million) traded on the two exchanges, down 19 per cent in volume and 16 per cent in value compared to Monday’s figures.